The government of Canada has approved the acquisition of Sunwing Vacations and Sunwing Airlines by WestJet Airlines Ltd., subject to strict terms and conditions.

In determining whether the proposed purchase is in the public interest, the government considered a broad range of factors, such as levels of service, social and economic implications, the financial health of the air transportation sector, and competition.

As part of the conditions of the merger, WestJet will be required to increase regional connectivity, improve baggage handling, maintain capacity on routes most affected by the merger, and extend Sunwing vacation package offerings to five new Canadian cities.